Professional Documents
Culture Documents
Social justice means the promotion of the welfare In case of doubt, all labor legislation
of all the people, the adoption by the Government and all labor contracts shall be
of measures calculated to insure economic construed in favor of the safety and
stability of all the competent elements of decent living for the laborer.
society.(Calalang vs. Williams, G.R. No. 47800,
December 2, 1940) B. CONSTRUCTION IN FAVOR OF LABOR
APPRENTICE LEARNER
Nature of Work Highly skilled or technical Semi-skilled & industrial
Training Practical training supplemented by theoretical Practical training WON such is
instructions supplemented by theoretical
instructions
Type of work Apprenticeable occupations approved by the Non-apprenticeable
SOLE (Sec. of Labor & Employment)
Agreement Written Apprenticeship Agreement Learnership Agreement
Hiring At the option of employer At the option of the Learner
Commitment
Period More than 3 months, shall not exceed 6 months Shall not exceed 3 months
Qualifications (1) The person is at least fifteen (15) years of (1) When no experienced workers are
age, provided those who are at least fifteen (15) available;
years of age but less than eighteen (18) may be (2) The employment of learners is
eligible for apprenticeship only in non-hazardous necessary to prevent curtailment of
occupation; employment opportunities; and
(2) Possess vocational aptitude and capacity for (3) The employment does not create
apprenticeship as established through unfair competition in terms of labor
appropriate tests; and costs or impair or lower working
(3) Possess the ability to comprehend and follow standards.
oral and written instructions.
Wages May be paid or not; if paid, 75% of minimum Must always be paid; 75% of minimum
a) No compensation if SOLE authorizes, as OJT (a) Learners in piecework shall be paid
is required by the school in full for the work done.
DOLE Approval Yes DOLE approval is essential No, DOLE approval not required;
inspection only.
Deduction of Yes, expenses for training deductible from income NONE.
Training tax
Expenses
business or branch office of the employer and (1) Brown outs of short duration not exceeding 20
whose actual hours of work in the field cannot be minutes is compensable and regarded as
determined with reasonable certainty. hours worked
Note: Fishermen are not field personnel but under (2) Brown outs more than 20 minutes may not be
the fisheries code are field personnel (Mercidar treated as compensable hours provided that:
Fishing Corp. vs NLRC, GR no. 112574, 8
(a) The employees can leave their workplace
October 1998)
(b) The employees can use the time for their
own interest
A. Principles of determining hours worked:
ii. Compressed work week –
1. All hours worked which the employee is
required to give to his employer, regardless resorted to by employer to prevent losses due to
whether or not such hours are spent in causes beyond his control. To be an exception to
productive labor or involve physical or mental the “8-hr work a day”, employees must agree to
exertion the temporary change of work schedule and they
2. An employee need not to leave the premises must not suffer any loss of overtime pay, fringe
of the workplace in order that his rest periods benefits, or their weekly or monthly take home
shall be counted, it being enough that he pay (DOLE Explanatory Bulletin, 23 July 1985)
stops working, may rest completely, to go
elsewhere whether within or outside the C. Meal break
workplace
3. If the work performed was necessary, or it Rules on Meal Periods (Article 85)
benefited the employer, or the employee
1. Should not be less than 60 minutes which is
could not abandon his work at the end of his
not compensable except where employees
normal working hours because he had no
are required to standby for emergency work
replacement, all time spent for such work
2. A meal period of not less than twenty (20)
shall be considered as hours worked, if the
minutes may be given by the employer
work was with the knowledge of his employer
provided that such shorter meal period is
or immediate supervisor.
credited as compensable hours worked of the
4. The time during which an employee is inactive
employee:
by reason of interruptions in his work beyond
a. Where the work is non-manual work in
his control shall be considered working time
nature or does not involve strenuous physical
either if the imminence of the resumption of
exertion;
work requires the employee's presence at the
b. Where the establishment regularly operates
place of work or if the interval is too brief to
not less than sixteen (16) hours a day;
be utilized effectively and gainfully in the
c. In case of actual or impending emergencies
employee's own interest.
or there is urgent work to be performed on
machineries, equipment or installations to
B. Hours of work avoid serious loss which the employer would
otherwise suffer; and
Hours worked include (Article 84): d. Where the work is necessary to prevent
1. All time the employee is on duty or be at the serious loss of perishable goods.
prescribed workplace 3. Rest periods or coffee breaks running from
2. All time the employee suffered or permitted to five (5) to twenty (20) minutes shall be
work considered as compensable working time
3. Rest Periods that shall not be more than 20
minutes D. Waiting Time
i. Power Interruptions
Considered working hours if:
DOLE Policy no. 36 provides that:
o Waiting is an integral part of work
o Employee is required to wait by the employer
- Under time is not offset by Overtime (Article Regular Holiday Special Holiday
88) – the undertime hours represent only the Compensable even Not compensable if
if he did not go to he did not go to
employee’s hourly rate while overtime reflect
work work
both the hourly rate and the overtime premium
Limited by RA 9492 Not limited since a
and offsetting shall deprive the overtime local ordinance can
premium of employees (NWSA vs NWSA give special
Consolidated Unions, GR No. 18939, 31 holidays
August 1964) Rate: 200% Rate: 130%
Coverage:
- Shall apply only to establishments collecting
service charges such as hotels, restaurants,
lodging houses, night clubs, cocktail lounge,
massage clinics, bars, casinos and gambling
houses, and similar enterprises, including
those entities operating primarily as private
subsidiaries of the Government.
X – NOT ENTITLED
– ENTITLED
Overtime Service Holiday 13th Month Wage Premium
Pay Incentive Pay Pay Increase Pay for
Leave Pay from Wage Holiday
Order and Rest
Day
Managers
and X X X
members of
managerial
staff
Field X X X
Personnel
Dependent
Family X X X X
Members
Domestic X X X X
Servants
Piece X X
Workers
FACILITIES v SUPPLEMENT
FACILITIES SUPPLEMENT
Constitute extra Items of expense
remuneration or special necessary for the laborer’s
B. WAGE v SALARY
privileges or benefits and his family’s existence
given to or received by and subsistence so that by
WAGES SALARY the laborers over and express provision of law
above their ordinary
Remuneration or earnings, Paid to white collar earnings or wages.
however designated, workers and denote a Independent of wages form part of the wage and
capable of being expressed higher grade of Not wage deductible when furnished by the
in terms of money, whether employment employer are deductible
fixed or ascertained on a therefrom
time, task, piece, or meals and snacks -
deduction cannot be more
commission basis, or other
than 70% of the value of
method of calculating the the meals and snacks,
same, which is payable by provided that such
an employer to an employee deduction must be
under a written or unwritten authorized in writing by the
contract of employment for employee; remaining 30%
has to be subsidized by the
work done or to be done, or
employer
for services rendered or to
be rendered of Labor and
Employment, of board,
NON-DIMUNITION OF BENEFITS
lodging, or other facilities
customarily furnished by the When Applicable:
employer to the employee 1. The practice is consistent and deliberate
(Art. 97).
(Metrobank vs NLRC, GR No. 152928, 18
Under Art. 1708 of the Civil It is not exempt from June 2009)
Code, it is exempted execution, 2. Diminution is done unilaterally by the
execution, garnishment, garnishment, or employer (Steel Corp. vs NMS-IND-APL, GR
or attachment except for attachment (Gaa vs No.185556, 28 March 2011)
debts related to food, CA, GR No. L-44169, 3 3. It has been a Practice for a long period of
clothing, shelter and December 1985) time (Phil. Appliance Corp. vs CA, GR
medicines No.149434, 3 June 2004)
4. Practice is not due to error (Vergara vs Coca
C. PAYMENT OF WAGES Cola, GR No. 176985, 1 April 2013)
Exceptions:
LEAVES
COVERAGE AND EXCLUSIONS
Coverage Exclusions
Service Incentive Employees who have rendered at least ONE YEAR 1) Employers with LESS THAN 10
Leave Pay of service WORKERS regardless of nature of
business
2) Employers exempted by DOLE
Secretary on account of
(1) When the child works directly under the sole transportation, school projects and school
responsibility of his/her parents or legal guardian activities.
who employs member of his/her family provided:
a. employment does not endanger the child’s Rights and Privileges (GRABS)
life, safety, health and morals (1) Guarantee of privacy
b. employment does not impair the child’s (2) Right to education and training
normal development (3) Access to outside communication
c. the parent/legal guardian provides the (4) Board, lodging and medical assistance
child with primary and/or secondary (5) Standard treatment
education by DEPed.
4. Homeworkers
(2) Where the child’s employment or participation
in public entertainment or information through An industrial homeworker is a worker who
cinema, theater, radio, or tv is essential, provided: is engaged in industrial homework, a system of
a. employment does not involve production under which work for an employer or
advertisements or commercials promoting contractor is carried out by a homeworker at
alcoholic beverages, intoxicating his/her home. The materials may or may not be
drinks, tobacco and its by-products or furnished by the employer or contractor.
exhibiting violence;
b. there is w written contract approved by 5. Night Workers
the DOLE; and
c. The conditions prescribed for the A night worker is any employed person
employment of minors are met. whose work requires performance of a substantial
number of hours of night work which exceeds a
Hours of work: specified limit. This limit shall be fixed by the
(1) A child below 15 years of age may be allowed Secretary of Labor after consulting the workers'
to work for not more tan 20hours a week, not representatives/labor organizations and
more than 4hours any given day. employers.
(2) A child 15 years of age but below 18 years shall IV. POST-EMPLOYMENT
not be allowed for more than 8 hours a day, and
in no case beyond 40 hours a week. A. Employer-employee relationship
-No child below 15 years of age shall be 1. Tests in determine employer-
allowes to work between 8pm to 6am of employee relationship
the following day and no child 15 years
of age but below 18 years shall be The “four–fold test”:
allowed to work between 10pm and a. Selection and engagement of the
6am of the following day.
employee;
b. Payment of wages;
3. Kasambahay
c. Power of dismissal;
RA 10361 Domestic Workers Act" or "Batas d. Power of control
Kasambahay"
Control test- most important test. The employer
has reserved the right to control not only the work
Domestic worker or "Kasambahay" refers
to be achieved but the manner and method by
to any person engaged in domestic work within an
which such work is to be achieved.
employment relationship such as, but not limited
to, the following: general househelp, nursemaid or
Economic Test- The economic realities prevailing
"yaya", cook, gardener, or laundry person, but
within the activity or between the parties are
shall exclude any person who performs domestic
examined.
work only occasionally or sporadically and not on
an occupational basis.
The two‐tiered test
a. The putative Employer’s power to control
The term shall not include children who are under the Employee with respect to the means
foster family arrangement, and are provided
and methods by which the work is to be
access to education and given an allowance
accomplished; and
incidental to education, i.e. "baon",
b. The underlying economic realities of the and undertakes the service under its own
activity or relationship. contract work on his account and responsibility;
ACCOUNT, under his own and the employees
RESPONSIBILITY, using his recruited, supplied or
2. Kinds of employment
own MANNER AND placed by such contractors
METHODS, FREE from the are performing activities
TYPE DESCRIPTION
control of the principal in which are DIRECTLY
REGULAR Those who are hired for activities all matters connected with RELATED to the main
EMPLOYEES which are necessary or the performance of work business of the principal;
desirable in the usual trade or excepting the results
business of the employer. thereof.
PROBATIONARY Those who are hired generally for He has his own CAPITAL in The CONTRACTOR has NO
regular positions but are placed the form of TOOLS, CONTROL over the conduct
on a probationary status for a EQUIPMENT, MACHINERY, of the work to be done by
period of 6 months (as a general WORK PREMISES, and that his employees. (Sec. 5 of
rule). May become regular once the agreement between Department Order No. 18-
he has qualified as such in the contractor and 02 requires any two of the
accordance with reasonable principal assures the elements to be present)
standards made known to him at former’s employees of ALL
the time of hiring. They are RIGHTS AND BENEFITS (Memory Aid: No Cap Direct
considered regular if they are under the law. OR No Control)
allowed to work beyond the
ELEMENTS: (MEMORY AID:
probationary period.
I ARM FREE CAPITAL
TEMWORK R&B)
TERM EMPLOYEES those who are hired for a specific TRILATERAL RELAT.
period, the arrival of the date NONE
specified in the contract of which 1. Contract between
automatically terminates the Principal and the Agency:
employer-employee relationship. CIVIL CONTRACT
(Brent School vs. NLRC, 181
SCRA 702) 2. Contract between
PROJECT The principal test for determining Agency and its employees:
EMPLOYEES whether particular employees are LABOR CONTRACT
properly characterized as "project SOLIDARY LIAB.
employees" as distinguished from The employer is deemed
"regular employees" is whether or The employer is considered the DIRECT employer and is
not the project employees were an INDIRECT EMPLOYER, made liable to the
assigned to carry out a "specific and is made solidarily employees of the contractor
project or undertaking," the liable with the contractor to for a more comprehensive
duration and scope of which were the employees of the latter purpose (wages and all
specified at the time the for a more limited purpose. other benefits in LC). The
employees were engaged for that labor-only contractor is
project. deemed merely an agent.
SEASONAL Those hired for work or services
EMPLOYEES which is seasonal in nature, and
the employment is for the A. Termination of Employment
duration of the season.
a. Resignation versus Constructive
dismissal
3. Job-contracting versus Labor-Only
Resignation Constructive Dismissal
Contracting
It is the voluntary act of Quitting, because
employees who are continued employment is
compelled by reasons to rendered impossible,
Job-Contracting Labor-Only disassociate themselves unreasonable or unlikely,
Contracting from their employment. It as an officer involving
ELEMENTS must be done with intention demotion in rank and
There is a job-contracting The contractor or sub- of relinquishing the office, diminution in pay. (Jo
permissible by law where contractor DOES NOT HAVE accompanied by the act of Cinema Corp vs Abellana
the contractor/agency SUBSTANTIAL CAPITAL or abandonment. Where 360 SCRA 142 (2001)
carries on an investment to actually evidence reveals otherwise,
INDEPENDENT business perform the job, work or then illegal dismissal.
now affirms the Wenphil doctrine and abandoning It is the result of a bilateral act of the parties, a
the Serrano ruling. voluntary agreement between the employer and
the employees whereby the latter after reaching a
Difference in separation pay.(Jaka certain age agrees and/or consents to sever his
Food Processing v. Pacot, G.R. No. employment with the former. (Soberano v. Sec. of
151378; 28 March 2005) Labor, G.R. Nos. L‐43753‐56 and L‐50991, Aug. 29,
1980)
If the dismissal is based on a just cause
under Article 282 but the employer failed GR:
to comply with the notice requirement, the (1) MANDATORY upon reaching 65 years of age,
sanction to be imposed upon him should be no service requirement;
tempered because the dismissal process (2) OPTIONAL- upon reaching the age of 60 years
of age, at least 5yrs of service, at the option of the
was, in effect, initiated by an act imputable
employer.
to the employee. Hence: P30,000.00
nominal damages for non-compliance with EX:
due process, because employee has Where the company provides for a Retirement Plan
committed an infraction with earlier retirement age, then the company’s
Retirement Plan will apply.
On the other hand, if the dismissal is based
on an authorized cause under Article 283
but the employer failed to comply with the MANAGEMENT PREROGATIVE
notice requirement, the sanction should be
stiffer because the dismissal process was What is Management Prerogative?
initiated by the employer’s exercise of his
management prerogative. Hence, Except as limited by special law, an employer is
free to regulate according to his own discretion
P50,000.00 nominal damages for non-
and judgment, all aspects of employment,
compliance with due process, because
including, hiring, work assignments, working
employee did not commit anything wrong methods, time, place, and manner of work, tools
but that the termination was due to an to be used, processes to be followed, supervision
exercise of management prerogatives. of workers, working regulations, transfer of
employees, work supervision, lay-off of workers
4 Preventive Suspension and the discipline, dismissal and recall of work.
It is a disciplinary measure for a protection of the
Valid Exercise of Management Prerogatives
company’s property pending investigation of any
alleged malfeasance committed by the employee.
The free will of the management to conduct its
own affairs to achieve its purpose cannot be
Q: May a second preventive suspension be
denied, PROVIDED THAT THE SAME IS
imposed on the employee, on account of additional
EXERCISED:
charges found against him?
1. IN GOOD FAITH (BONA-FIDE IN
A: YES. If the employee is charged with another
CHARACTER),
offense, then the employer is entitled to impose a
2. FOR THE ADVANCEMENT OF THE
preventive suspension not to exceed 30 days
EMPLOYER’S INTEREST; AND
specifically for the new infraction. Indeed, a fresh
3. NOT TO CIRCUMVENT THE RIGHTS OF
preventive suspension can be imposed for a
THE EMPLOYEES. (Capitol Medical Center
separate or distinct offense. Thus, an employer is
vs. Meriz; San Miguel Brewery and Union
well within its rights to preventively suspend an
Carbide cases).
employee for other wrongdoings that may be later
discovered while the first investigation is ongoing.
A. Discipline
(Smart Communications, Inc., Mr. Napoleon L.
Nazareno, and Mr. Ricky P. Isla and Mr. Ricky P.
Isla, vs. Jose Leni Z. Solidum, G.R. No. 197763, 07
The Employer has the prerogative to instill
December 2015) discipline in his Employees and to impose
reasonable penalties, including dismissal, on
d. Retirement erring Employees pursuant to company rules and
regulations. (San Miguel Corporation v. NLRC, G.R. A: No. There is no law that compels an Ee to
No. 87277, May 12, 1989) accept promotion, as a promotion is in the nature
of a gift or a reward, which a person has a right to
Q: Is the power of the Employer to discipline refuse. When an Ee refused to accept his
his Emplyees absolute? promotion, he was exercising his right and cannot
be punished for it. While it may be true that the
A: No. While management has the prerogative to right to transfer or reassign an Ee is an Er’s
discipline its Employees and to impose appropriate exclusive right and the prerogative of
penalties on erring workers, pursuant to company management, such right is not absolute. (Dosch
rules and regulations, however, such management vs. NLRC and Northwest Airlines, G.R. No. 51182,
prerogatives must be exercised in good faith for July 5, 1983)
the advancement of the Employer’s interest and
not for the purpose of defeating or circumventing Q: Who has the burden of proving that the
the rights of the Ees under special laws and valid transfer was reasonable?
agreements. (PLDT vs. Teves, G.R. No. 143511,
November 10, 2010) A: Employer has the burden of proving that the
transfer is not unreasonable inconvenient or
B. Transfer of Employees prejudicial to the Ee; nor does it involve a
demotion in rank or a diminution of his salaries,
The employer has the inherent right to transfer or privileges and other benefits. Should the Er fail to
assign an employee in the pursuance of its overcome this burden of proof, the Ee’s transfer
legitimate business interest subject only to the shall be tantamount to constructive dismissal.
condition that it be not motivated by (Blue Dairy Corporation v. NLRC, 314 SCRA 401
discrimination or bad faith. (Pt&T v Laplana, GR [1999])
no. 76645 July 23, 1991)
The mere fact that it would be inconvenient does
not by itself make the transfer illegal. ( OSS
Q: Discuss briefly the Er’s right to transfer Security v NLRC, 325 SCRA 157 [2000])
and reassign Ees.
C. Productivity Standard
A: In the pursuit of its legitimate business
interests, especially during adverse business Q: May an Er impose productivity standards
conditions, management has the prerogative to for its workers?
transfer or assign Ees from one office or area of
operation to another provided there is no A: An Er is entitled to impose productivity
demotion in rank or diminution of salary, benefits standards for its workers, and in fact, non‐
and other privileges and the action is not compliance may be visited with a penalty even
motivated by discrimination, bad faith, or effected more severe than demotion. The practice of a
as a form of punishment or demotion without company in laying off workers because they failed
sufficient cause. This privilege is inherent in the to make the work quota has been recognized in
right of Ers to control and manage their this jurisdiction. Failure to meet the sales quota
enterprises effectively. assigned to each of them constitute a just cause
of their dismissal, regardless of the permanent or
Q: Can security of Tenure prevent transfer? probationary status of their employment.
A: The right of Ees to security of tenure does not Failure to observe prescribed standards of work,
give them vested rights to their positions to the or to fulfill reasonable work assignments due to
extent of depriving management of its prerogative inefficiency may constitute just cause for
to change their assignments or to transfer them. dismissal. Such inefficiency is understood to mean
(Endico v. Quantum Foods Distribution Center, failure to attain work goals or work quotas, either
G.R. No. 161615, Jan. 30, 2009) by failing to complete the same within the allotted
reasonable period, or by producing unsatisfactory
Q; May the Er exercise his right to transfer results. This management prerogative of requiring
an Ee and compel the latter to accept the standards may be availed of so long as they are
same if said transfer is coupled with or is in exercised in good faith for the advancement of the
the nature of promotion? Er’s interest. (Leonardo vs. NLRC, G.R. No.
125303, June 16, 2000)
Q: Can management change the agreed Q: What are the factors to test WON a
working time? restrictive covenant is reasonable or not?
A: The working hours may be changed, at the A: The following factors should be considered:
discretion of the company, should such change be (a) whether the covenant protects a legitimate
necessary for its operations, and that the business interest of the employer;
employees shall observe such rules as have been (b) whether the covenant creates an undue
laid down by the company. (Interphil Laboratories burden on the employee;
Employees Union-FFW v. Interphil Laboratories, (c) whether the covenant is injurious to the public
Inc., 372 SCRA 658 [2001]) welfare;
(d) whether the time and territorial limitations
F. Marriage between employees of contained in the covenant are reasonable; and
competitor employers (e) whether the restraint is reasonable from the
standpoint of public policy (Rivera v. Solidbank
Q: Is a company policy prohibiting marriage Corporation [G.R. No. 163269, 19 April 2006]).
between co‐workers valid?
SSS GSIS
COVERAGE 1) ALL EMPLOYEES not over 60 years of age and 1. COMPULSORY MEMBERSHIP
their employers All government personnel, whether
2) A DOMESTIC WORKER who has rendered at elective or appointive, irrespective of
least 1 month of service status of appointment , provided:
3) SELF-EMPLOYED persons as may be (a) receiving fixed monthly
determined by the Commission, including but not compensation and
limited to the following: (b) have not reached the mandatory
(a) self-employed professionals retirement age of 65 years
(b) partners and single proprietors
(c) actors and actresses, directors, 2. Employees who have reached the
scriptwriters and news correspondents who do retirement age of 65 or more shall also
not fall within the definition of the term employee be covered under the following
of this act conditions:
(d) professional athletes, coaches, trainers (a) an ELECTIVE OFFICIAL who at the
and jockeys time of election to public office is below
(e) individual farmers and fishermen 65 years of age and will be 65 years or
more at the end of his term of office,
including the period/s of his re-election
to public office thereafter without
interruption
(b) APPOINTIVE OFFICIALS who,
before reaching the mandatory age of
65, are appointed to government
position by the President of the Republic
of the Philippines and shall remain in
government service at age beyond 65.
(c) CONTRACTUAL EMPLOYEES
including casuals and other employees
with an employee-government agency
relationship are also compulsory covered,
provided they are receiving fixed monthly
compensation and rendering the required
number of working hours for the month
EXCLUSION Excluded employer: 1. UNIFORMED PERSONNEL of the AFP,
Government and any of its political PNP, Bureau of Fire Protection, and BJMP
subdivisions, branches or instrumentalities, 2. Barangay and Sanggunian Officials
including corporations owned or controlled by the who are not receiving fixed monthly
Government with original charters. compensation
3. CONTRACTUAL EMPLOYEES who are
Excluded employees: not receiving fixed monthly
(1) Employment purely CASUAL and not for compensation
the purpose of occupation or business of the 4. Employees who do not have MONTHLY
employer REGULAR HOURS OF WORK and are NOT
(2) Services performed on or in connection RECEIVING FIXED MONTHLY
with an ALIEN VESSEL by an employee if he is COMPENSATION.
employed when such vessel is outside the
Philippines
(3) Services performed by TEMPORARY
EMPLOYEES; which may be excluded by
DEPENDENTS (1) The legal spouse entitled by law to receive SAME, except that a child here is below
support from the member; 18.
(2) The legitimate, legitimated or legally adopted,
and illegitimate child who is unmarried, not
gainfully employed, and has not reached twenty-
one (21) years of age, or if over twenty-one (21)
years of age, he is congenitally or while still a
minor has been permanently incapacitated and
incapable of self-support, physically or mentally;
and
(3) The parent who is receiving regular support
from the member.
BENEFITS (a) Monthly pension (a) Monthly pension
(b) Dependents’ pension (b) Retirement benefits
(c) Retirement benefits (c) Permanent disability benefits
(d) Permanent disability benefits (d) Death Benefits
(e) Death benefits (e) Funeral benefits
(f) Funeral benefits (f) Loan – GSIS website provides for this
(g) Loan – Social Security Commission Resolution (g) Temporary disability benefits [similar
No. 669. Moreover, several SSS-issued circulars to sickness]
such as Circular No. 21-P and No. 52 pertain to the (h) Separation benefits
treatment of salary loans, sometimes providing for (i) Unemployment benefits – Sec 11
more flexible payment terms or condonation for (j) Survivorship benefits
delinquent payers; Santiago v. CA and SSS, GR # (k) Life insurance benefits
L-39949 [1984] resolved an issue involving the Note: Judiciary and Constitutional
treatment of salary loan repayments; SSS website Commissions are entitled to life insurance
also shows loans only.
(h) Sickness benefits
(i) Maternity leave benefits
the System prior to age sixty (60) and has not Right to form, join, not join or assist labor
been compulsorily retired. organizations for the purpose of collective
bargaining or for their mutual aid and protection.
(d) An employee who is coverable by both the
GSIS and SSS shall be compulsorily covered by
both Systems. [Sec. 2, IRR of Title II, Book IV of 1. Who may exercise the right
LC]
Any employee may be eligible to join and be a
(e) Filipinos working abroad in the service of an member of labor union, beginning on his first day
employer as defined in Section 3 hereof shall be of service, whether employed for a definite period
covered by the System, and entitled to the same or not. (UST faculty Union vs Bitonio 318 SCRA
benefits as are provided for employees working in 185)
the Philippines. [Sec. 5, IRR of Title II, Book IV of
LC] Exceptions:
WHEN COMPENSABLE
Grounds: (1) Managerial employees (Art. 245, Labor
Code.)
(1) For the injury and the resulting disability or
death to be compensable, the injury must be the Note: Supervisory employees may unionize and
result of accident arising out of and in the course form labor organizations of their own, but may not
of the employment. join rank-and-file union.
(2) For the sickness and the resulting disability or
death to be compensable, the sickness must be (2) Supervisory union affiliate with a
the result of an occupational disease listed under Federation with rank-and-file unions
Annex “A” of these Rules with the conditions set Article 245 has now been amended by Congress
therein satisfied, otherwise, proof must be shown under Rep. Act No. 9481.The rank and file union
that the risk of contracting the disease is increased and the supervisors’ union operating within the
by the working conditions. same establishment may join the same federation
or national union.”
Limitation: No compensation shall be allowed to
the employee or his dependents when the injury, (3) Confidential employees -- Confidential
sickness, disability, or death was occasioned by employees are those who: (1) assist or act in a
any of the following: confidential capacity, (2) to persons who
(1) his intoxication; formulate, determine, and effectuate
(2) his willful intention to injure or kill himself or management policies in the field of labor relations.
another; or The two criteria are cumulative, and both must be
met if an employee is to be considered a
(3) his notorious negligence confidential employee — e.g., the confidential
(4) As otherwise provided by law. relationship must exist between the employee and
his supervisor, and the supervisor must handle the
prescribed responsibilities relating to labor
Vll. Labor Relations relations. The exclusion from bargaining units of
the employees who, in the normal course of their
A. Right to self-organization duties, become aware of management policies
relating to labor relations is a principal objective
Fundamental right guaranteed by the Constitution
sought to be accomplished by the “confidential
and the Labor Code.
employee rule”. (Tunay na Pagkakaisa ng
Manggagawa sa Asia Brewery vs. Asia Brewery, to read as follows ART. 245. Ineligibility of
G.R. No. 162025, 03 August 2010) Managerial Employees to Join any Labor
Organization; Right of Supervisory Employees.)
(4) Employees of International
Organizations or Specialized Agencies which
are registered with the United Nations and 3. Rights and Conditions of membership
which enjoys diplomatic immunity. a. Nature of relationship
bargaining unit, reported with the Regional a bargaining deadlock which had been
Office. submitted to conciliation or arbitration
or had become the subject of a valid
notice of strike or lockout to which an
b. Certification election with or without
incumbent or certified bargaining agent
run‐off- It is the process of determining
is a party;
through secret ballot the sole and exclusive
representative of the Ees in an appropriate
bargaining unit, for purposes of CB or Run‐off election
negotiation. (Sec. 1 [h], Rule I, Book V, An election conducted when:
IRR)
1. An election which provides for 3 or more choices
results in none of the contending unions receiving
No duly registered CBA a majority of the valid votes cast, and
2. There are no objections or challenges which if
Petition for certification election may be sustained can materially alter the results, provided
filed any time.
3. The total number of votes for all the contending
unions is at least 50% of the number of votes cast.
With duly registered CBA (Sec. 1, Rule X, Book V, IRR)
a. Contract Bar Rule- the petition was 4. Not one of the choices obtained the majority of
filed before or after the freedom period the valid votes cast (50%+ 1 second majority);
of a duly registered collective
5. The two choices which garnered the highest
bargaining agreement; provided that
votes will be voted and the one which garners the
the sixty-day period based on the
highest number of votes.
original collective bargaining
agreement shall not be affected by any
amendment, extension or renewal of Double majority rule
the collective bargaining agreement; 1. In determining the eligible votes cast (first
majority) include spoiled ballots
b. One Year Bar Rule: the petition was 2. In determining valid votes (second majority),
filed within one (1) year from entry of eliminate spoiled ballots but included the
voluntary recognition or a valid challenged votes
certification, consent or run-off election
and no appeal on the results of the c. Consent election- An election voluntarily
certification, consent or run-off election agreed upon by the parties, with or without
is pending; the intervention by DOLE. (Sec.1 [h], Rule
I, Book V, IRR)
Duration of a CBA?
E. Unfair Labor Practice
With respect to the representation aspect (refers
to the identity and majority status of the union ULP are prohibited acts which contravene the
that negotiated the CBA as the exclusive constitutional rights of the employees to self-
bargaining representative): 5 years organization. They are considered as inimical to
With respect to all other provisions (refers to the the legitimate interest of both labor and
rest of the CBA, economic as well as non‐economic management, the commission of which may give
provisions other than representational rise to both civil and criminal liabilities in the
provisions): 3 years after the execution of the CBA manner provided for by law
The application for CBA registration shall be ULP refers to ‘acts that violate the workers right to
accompanied by the original and 2 duplicate copies organiza.’ The prohibited acts are related to the
of the following req’ts: workers’ right to self-organization, and to the
1. CBA observance of a collective bargaining agreement.
2. A statement that the CBA was posted in at Without the element, the acts, even if unfair, are
least 2 conspicuous places in the not unfair labor practices. (General Santos Coca-
establishment concerned for at least 5 cola Plant Free Workers Union – TUPAS v Coca-
cola Bottlers Phils. Inc., Court of Appeals and
days before its ratification
NLRC)
3. Statement that the CBA was ratified by the
majority of the Ees in the bargaining unit. Violations of the provisions of the Collective
Barganinig Agreement which are NOT gross in
Automatic renewal clause character, are no longer considered as ULP.
union members when such will interfere bargaining. (Insular Life Assurance Co. Ltd.,
with, restrain or coerce Ees in the exercise Employees Association-NATU v Insular Life
of their rights to self‐organization. Assurance Co. Ltd., 37 SCRA 244)
4. Company unionism - Any labor
organization whose formation, function or Q: What are the reliefs available in ULP
administration has been assisted by any act cases?
defined as ULP. (Art. 212[i])
5. Discrimination for or against union A: The following reliefs may be availed of:
membership - It is to discriminate in 1. Cease and desist order
regard to wages, hours of work and other 2. Affirmative order
terms and conditions of employment in 3. Court may order the employer to bargain.
order to encourage or discourage CBA may be imposed.
membership in any labor organization. 4. Strike by union members
6. Discrimination because of testimony –
To dismiss, discharge or otherwise ULP cases are not subject to compromise in view
prejudice or discriminate against an of the public interest involve. The relation between
employee for having given or being about capital and labor is not merely contractual. They
to give testimony are impressed with public interest that labor
7. Violation of duty to bargain - This is the contracts must yield to common good.
act of violating the duty to bargain
collectively as prescribed in the LC.
8. Paid negotiation - : It is the act of the Q: Is the commission of an ULP by an
employer to pay negotiation or atty’s fees employer subject to criminal prosecution?
to the union or its officers or agents as part
of the settlement of any issue in collective A: Yes, because ULPs are not only violations of
bargaining or any other dispute. the civil rights of both labor and management but
9. Gross violation of CBA - There must be a are also criminal offenses against the State which
flagrant and/or malicious refusal to comply shall be subject to prosecution and punishment.
with the economic provision of the CBA (Art. 247 LC). However, criminal aspect can
only be filed when the decision of the labor
tribunals, finding the existence of ULP, shall have
Test to determine whether or not employer is become final and executory.
guilty of ULP
discrimination against an Ee with respect to A: No. A union violates the law when, to restrain
whom membership in such organization or coerce non‐strikers from working during the
has been denied or to terminate an Ee on strike, it:
any ground other than the usual terms and
conditions under which membership or 1. Assaults or threatens to assault them
continuation of membership is made 2. Threatens them with the loss of their jobs
available to other members 3. Blocks their ingress to or egress from the
3. To violate the duty, or refuse to bargain plant
collectively with the Er, provided it is the 4. Damages non‐strikers’ automobiles or
representative of the Ees forces them off the highway
4. To cause or attempt to cause an Er to pay 5. Physically preventing them from working
or deliver or agree to pay or deliver any 6. Sabotages the Er’s property in their
money or other things of value, in the presence, thereby creating an atmosphere
nature of an exaction, for services which of fear or violence
are not performed or not to be performed, 7. Demonstrates loudly in front of a non‐
including the demand for fee for union strikers’ residence with signs and shouts
negotiations accusing the non‐striker of “scabbing”
5. To ask for or accept negotiations or atty’s 8. Holding the non-striker up to ridicule
fees from Ers as part of the settlement of 9. Seeking public condemnation of the non‐
any issue in collective bargaining (CB) or striker
any other dispute or
6. To violate a CBA. Q: What is a case of union induced
discrimination by labor organization (LO)?
Q: Is interference by a LO an ULP?
A: This pertains to the arbitrary use of union
A: No, because interference by a LO in the security clause.
exercise of the right to organize is itself a function
of self‐ organizing. A union member may not be expelled from the
union, and consequently from his job, for personal
Q: What are examples of interference which and impetuous reasons or for causes foreign to the
does not amount to ULP? closed shop agreement. (Manila Mandarin Ees
Union v. NLRC, G.R. No. 76989, Sep. 29, 1987)
A:
1. Union campaigns for membership even Labor unions are not entitled to arbitrarily exclude
among members of another union qualified applicants for membership and a closed‐
2. Filing by a union of a petition to dislodge an shop applicants provision will not justify the
incumbent bargaining union employer in discharging, or a union in insisting
3. A bargaining union, through a union upon the discharge of an employee whom the
security clause, requires an incoming union thus refuses to admit to membership
employee to join the union. without any reasonable ground thereof. ( Salunga
v. CIR, G.R. No. L‐22456, Sep. 27, 1967)
The Labor Code only allows two (2) kinds of A: Any certified or duly recognized bargaining
strike/Lockout namely Economic Strike and ULP representative may declare a strike in cases of
Strike bargaining deadlock and unfair labor
practice. Likewise, the employer may declare a
lockout in the same cases. 2. In the absence of a
Economic Strike ULP Strike certified or duly recognized bargaining
As to nature representative, any legitimate labor organization
Voluntary strike because Involuntary strike; the LO in the establishment may declare a strike but only
the Ee will declare a is forced to go on strike on the ground of unfair labor practice. (Section
strike to compel because of the ULP 2, Rule XIII Book V, Omnibus Rules Implementing
management to grant its committed against them by The Labor Code, as amended).
demands the Er. It is an act of self‐
defense since the Ee’s are
Q: What are the tests in determining the
being pushed to the wall
and their only remedy is to legality of strike?
stage a strike
Who will initiate A: The following must concur:
The CB agent of the n declare an economic
appropriate bargaining strike Either the CB agent 1. Purpose test – the strike must be due to
unit can declare an or the LLO in behalf of its either bargaining deadlock and/or the ULP
economic strike members 2. Compliance with the procedural and
As to the cooling‐off period substantive req’ts of the law. (See
30 days from notice of 15 days from the filing of requisites of a valid strike)
strike before the intended the notice of strike
3. Means employed test – It states that a
date of actual strike
strike may be legal at its inception but
subject to the 7‐ day
strike ban eventually be declared illegal if the strike is
As to the exception to the cooling‐off period accompanied by violence which is
No exception – The cooling‐off period may widespread, pervasive and adopted as a
mandatory be dispensed with, and the matter of policy and not mere violence
union may take immediate which is sporadic which normally occur in a
Note: notice of strike and action in case of dismissal strike area.
strike vote may be from employment of their
dispensed with; they may officers duly elected in What are the instances when a strike or
strike immediately accordance with the lockout cannot be declared?
union’s constitution and by‐
laws, which may constitute
union busting where the Non‐strikable issues:
existence of the union is
threatened. It must still 1. CBA violations not gross in character
observe the mandatory 7‐ 2. Grounds involving inter/intra‐union
day strike ban period disputes
before it can stage a valid 3. When there is no notice of strike or lockout
strike or without the strike or lockout vote
4. After assumption of jurisdiction by the SLE
a. Nature
(b) It automatically results in a return-to-work
Q: What is the nature of the power of SLE of all striking workers (if one has already taken
under Art. 263(g)? place), or enjoins the taking place of a strike
(Union of Filipro Employees vs. Nestle Philippines,
A: The assumption of jurisdiction is in the nature Inc., 192 SCRA 396)
of a police power measure. This is done for the
promotion of the common good considering that a (c) While termination by reason of an illegal strike
prolonged strike or lockout can be inimical to the requires hearing, replacement by reason of
national economy. The SLE acts to maintain violation of a return-to-work order does not. (Free
industrial peace. Thus, his certification for Telephone Workers Union vs. PLDT, 113 SCRA
compulsory arbitration is not intended to impede 663, 678)
the worker’s right to strike but to obtain a speedy
settlement of the dispute. (Philtread Workers
Union v. Confesor, G.R. No. 117169, Mar. 12, Q: What is the effect of defiance to the
1997) return to work order?
Art. 263(g) does not interfere with the workers A: It shall be considered an illegal act committed
right to strike but merely regulates it, when in the in the course of the strike or lockout and shall
exercise of such right national interest will be authorize the SLE or the NLRC, as the case may
affected. The LC vests upon the SLE the discretion be, to enforce the same under pain or loss of
to determine what industries are indispensable to employment status or entitlement to full
national interest. employment benefits from the locking‐out Er or
backwages, damages and/or other positive and/or
Q: What is the nature of assumption and affirmative reliefs, even to criminal prosecution
certification orders of the Secretary of Labor? against the liable parties. (Sec. 6, Rule IX, of the
New Rules of Procedure of the NLRC; St.
A: The underlying principle embodied in Art. 264 Scholastica’s College v. Torres, G.R. No. 100158,
(g) on the settlement of labor disputes is that June 2, 1992)
assumption and certification orders are executor
in character and are strictly complied with by the "A Strike that is undertaken despite the issuance
parties even during the pendency of any petition by the Secretary of Labor of an assumption or
questioning their validity. This extraordinary certification order becomes a prohibited activity
authority given to the Secretary of Labor is aimed and thus illegal, pursuant to the second paragraph
at arriving at a peaceful and speedy solution to of Art. 264 of the Labor Code as amended
labor disputes, without jeopardizing national (Zamboanga Wood Products, Inc. vs. NLRC, G.R.
interests. 82088, October 13, 1989; 178 SCRA 482). The
Union, officers and members, as a result, are
Nature and Effect of Assumption and deemed to have lost their employment status for
Certification having knowingly participated in an illegal act."
(Union of Filipino Employees vs. Nestle
(a) Assumption and certification orders are Philippines, Inc. [192 SCRA 396])
executory in character and are strictly to be
complied with by the parties even during the JURISDICTION AND REMEDIES
pendency of any petition questioning their
validity. A. Labor Arbiter
Except as otherwise provided under the Code the A money claim arising The Regional Director
Labor Arbiters shall original and exclusive from employer- has jurisdiction if:
jurisdiction to hear and decide: employee relations,
(1) the money claim is
except SSS,
not accompanied by
ECC/Medicare claims, is
(1) Unfair labor practices cases; reinstatement AND
within the jurisdiction of
(2) Termination disputes; a labor arbiter if: (2) the claim does not
exceed P5,000
(3) If accompanied with a claim for reinstatement, (1) The claim,
those cases that workers may file involving wages, regardless of amount, is
accompanied with a
rates of pay, hours of work and other terms and
claim of reinstatement;
conditions of employment; or
(4) Claims for actual, moral, exemplary and other (2) The claim exceeds
forms of damages arising from the employer- P5,000, whether or not
employee relations; there is a claim for
reinstatement.
(5) Cases arising from any violation of Art. 264 of
this Code, including questions involving the
legality of strikes and lockouts;
REQUIREMENTS TO PERFECT APPEAL TO
(6) Except claims for Employees Compensation, NLRC
Social Security, Medicare and maternity benefits,
(1) The appeal should be filed within the
all other claims, arising from employer-employee
reglementary period;
relations, including those of persons in domestic or
household service, involving an amount exceeding (2) The Memorandum of Appeal should be under
five thousand pesos (P5,000) regardless of oath;
whether accompanied with a claim for
(3) The appeal fee should be paid;
reinstatement. [Art. 217]
(4) There should be posting of cash or surety
(7) Money claims arising out of employer-
bond, if judgment involves monetary award; and
employee relationship or by virtue of any law or
contract, involving claims for actual, moral, (5) There should be proof of service to the adverse
exemplary an other forms of damages, as well as party.
employment termination of OFWs;
REINSTATEMENT PENDING APPEAL
(8) Wage distortion disputes in unorganized
An order for reinstatement entitles an employee to
establishments not voluntarily settled by the
receive his accrued backwages from the moment
parties. [Art. 124]
the reinstatement order was issued up to the date
(9) Enforcement of compromise agreements when when the same was reversed by a higher court
there is non-compliance by any of the parties. without fear of refunding what he had received.
[Art. 227] (Garcia v. Philippine Airlines, Inc., G.R.
No.164856, January 20, 2009)
(10) Other cases as may be provided by law.
The reinstatement order of the Labor Arbiter is
immediately executory even pending appeal.
MONEY CLAIM (Article 223 (3), Labor Code; cf Pioneer
Texturizing vs. NLRC (280 SCRA 806 [1997]).
LABOR ARBITER REGIONAL DIRECTOR
NATIONAL LABOR RELATIONS COMMISSION The Secretary of the Department of Labor and
Employment may suspend the effects of the
(a) Original Jurisdiction: Over petitions for
termination pending resolution of the dispute in
injunction or temporary restraining order under
the event of a prima facie finding by the
Art. 218 (e).
appropriate official of the Department of Labor and
(b) Exclusive Appellate Jurisdiction: over all cases Employment before whom such dispute is pending
decided by labor arbiters [Art 217(b)] and the that the termination may cause a serious labor
DOLE regional directors under Art 129. dispute or is in the implementation of a mass lay-
off. (Article 277 (b))
VOLUNTARY ARBITRATOR
BUREAU OF LABOR RELATIONS (BLR) – MED
ARBITERS ORIGINAL AND APPELLATE Jurisdiction
The Bureau of Labor Relations and the Labor Exclusive and original jurisdiction over grievances
Relations Divisions in the regional offices of the
The VA or panel of VAs shall have original and
Department of Labor and Employment shall have
exclusive jurisdiction to hear and decide all
original and exclusive authority to act, at their own
unresolved grievances (see definition).
initiative or upon request of either or both parties,
on all inter-union and intra-union conflicts, and all Violations of a CBA, except those which are gross
disputes, grievances or problems arising from or in character, shall no longer be treated as ULP and
affecting labor-management relations in all shall be resolved as grievances under the CBA.
workplaces whether agricultural or non-
Note: Gross violations of CBA shall mean flagrant
agricultural, except those arising from the
and/or malicious refusal to comply with the
implementation or interpretation of collective
economic provisions of such agreement.
bargaining agreements which shall be the subject
of grievance procedure and/or voluntary PRESCRIPTION OF ACTION
arbitration.
ACTION PERIOD
DOLE SECRETARY
MONEY CLAIM All money claims arising
(a) VISITORIAL AND ENFORCEMENT from employer-employee
POWERS relations accruing during the
effectivity of this Code shall
The Secretary of Labor and Employment or his be filed within three (3)
duly authorized representatives, including labor years from the time the
regulation officers, shall have access to employer’s cause of action accrued;
records and premises at any time of the day or otherwise they shall be
night whenever work is being undertaken therein, forever barred.
and the right to copy therefrom, to question any
employee and investigate any fact, condition or
matter which may be necessary to determine
violations or which may aid in the enforcement of
this Code and of any labor law, wage order or rules
and regulations issued pursuant thereto.
(b) POWER TO SUSPEND EFFECTS OF
TERMINATION